JEFFERSON CITY, Mon. – A three year advance to a value added tax Online purchases were made on the last day of the 2021 legislative period.
SBs 153 and 97 from Sen. Andrew Koenig would allow the state to a value added tax via online purchases by vendors with physical presence in the state, a practice adopted by most other states. Commonly known as the Wayfair tax, it would come into effect in 2023 under the bill.
"Missouri has one of the worst things you could have in tax law by encouraging Missourians to buy from non-governmental corporations," Koenig told the Missouri Times. "As one of the last states in the country to have wayfair laws, it was vitally important for us to finalize SB 153 to improve the playing field for businesses in Missouri while giving working Missouri an income tax cut by To enable $ 380 million. "
Caretaker Rep. J. Egglestonwho sponsored his own version of the bill in the lower chamber said the final draft was the result of extensive collaboration between the House and the Senate. The statement bounced from chamber to chamber and happened in and out of conference over the past week and finally house 145-6 Friday afternoon.
"Everyone who cared got something they really liked, much more than what they might not have," he said. "At first we did not agree on all points, but after we had sat down to negotiate in good faith and knew that we wanted something positive for our state and our citizens, we were able to combine the two."
The latest version contains various tax regulations, starting with the elimination of income tax COVID-19 Economic Fund to create a Urban Agricultural Zone Fund. The bill would also gradually decrease Video Service Provider Fees In order to pay 2.5 percent of gross income in 2027, to change the economic context of the use tax and, among other things, to set up a voluntary Cancer Cancer Benefits Trust.
Missouri will be the last state to enact the fee when the bill is signed. Gov. Mike Parson identified Wayfair as a priority in its 2021 year State of the state addressin the hope that "the House and Senate will consider laws to address the unfair advantage of online retailers over small businesses in Missouri".
Internet tax laws have been enacted in many states in the past few years after 2018 South Dakota versus Wayfair, Inc.in which the US Supreme Court These states could levy taxes on distance sales. Until now, states have only been able to levy taxes on transactions with companies that maintain a physical presence in the state. Since the ruling, many states have passed their own laws establishing an economic context or taxable threshold for online sales.
Cameron Gerber studied journalism at Lincoln University. Prior to Lincoln, he earned an associate degree from State Fair Community College. Cameron is from Eldon, Missouri.
Contact Cameron at [email protected].